Queston about MCP? If they are mining rare earth then this means thre are very few competitors.
The pricing of rare earth should be stable and offer great profits. So, why is price of rare earth having so much pressure going downward?
Does this mean rare earth is not that rare at all. So, mining these substances are not very profitable business but very equipment intensive and costly to operate instead.
Or rare earth is about to be stable again. Or China is deliberately selling rare earth at deep discounts to crush all new entrants into this mining sector. In a way for China to be a monopoly?
What is the real truth going on? Anyone know?
Or it is all about a slight slow down in world economic activities?
Thanks for any discussions.
By the way, I'm going to offer a new company hopefully to replace Yahoo.finance. I'm not kidding you.
Company is called MyHUmanity dotorg --- I hope to get the website apps up and ready for testing sometime in August 2013 if not then hope to get this out by end of this year. We are bootstrapping this project with own seed funding so we are doing the coding ourselves. This project should have a team of programmers instead of just two people doing this. It is tough for sure but hope to get some prototype out soon. It will be fun when it is out.
I am bored wit Yahoo.finance after using it for the last 13 years. It is time to bring something better and new to the world of financial information and communications. Our company is a hybrid social enterprise so our projects are more toward social good also.
I do have some small amount of money available from my IRA account so I was thinking of MCP but I was looking at the last year when stock was at $50 and insiders sold a whole bunch of stock holdings an making a killing. Now, they bought some recently but since they made so much from last year, buying a small amount now is not as confident as it looks to me unless they buy back the same amount of money they made from last year then I would believe the recent buy was insider vision of much better future.
The recent offering is for $6 but then the current price is at $7.5. If people buy the current price,then the investor buying this offering at $6 would have made an instant profit of $1.5.
So, it would seem there will be pressure for this stock to drop down at $6 level going into earnings day feb 28. What you guys think?
For me, I think if rare earth is really rare and not easy to enter this business then long term should be great investment.I said longer term. If rare earth is not really that rare then profits are not that great for getting intothis business since it is a niche with pricing pressure all of the time and can be manipulated low. This means this is not rare at all. There is a mystery going on with China in how they control the pricing of these substances.
So, investing in MCP is kind of luck depending on if China wants high or lower pricing of rare earth. Another question is why would China want to price rare earth cheap and low? That is the mystery.